Swedish company North Volt is in crisis and with its proximity failure The European Union’s grand dream of not relinquishing its industrial dependence is also at a standstill. Chinese In the production of Battery For them Electric cars. The path to a green transition in the old continent is therefore becoming more complicated, with the company that has until now been the symbol of the process now heavily responsible for the internal electricity market crisis in 2024. month Dismissal Of 1,600 people (20% of its workforce) and, having scaled back its expansion plans, is now looking for new financing that will keep it afloat.
The North Volt: Rise, Trouble and Crisis
For a few months it makes you think that. North Volt may be on the edge of failure It represents the unimaginable. The company was co-founded by an Italian engineer. Paulo SirottiFirst Tesla, in fact, has received a lot of funding over the years from the EIB, the German government, as well as some of the most important companies in the automotive sector (BMW e Volkswagen).
A startup with a lot of traction, so much so that just in January 2024, NorthVolt announced the closing of a major new one. Financing Verde (€5 billion) – guaranteed by the European Investment Bank and a group of credit institutions, including Intesa Sanpaolo – necessary to expand the Gigafactory in Skellefteå, Sweden. In the same period, the European Commission approved a state aid package – 902 million – necessary to build a second plant in the region. Schleswig-Holstein.
However, this rosy picture emerged very quickly due to a combination of factors. The first is the production difficulties of the plant. SkellefteaEspecially unable to accelerate his business. It includes the dead Doubtful Of the three employees, who fell at work and at home (which is still under investigation) and the failure of important orders, such as those worth 2 billion BMW. Then there is the crisis. VolkswagenAnother company that, like BMW, is part of North Volt’s capital, and the steep decline in consumer demand for electric cars in Europe.
The company is looking for funds.
After those already mentioned. Dismissal And Scaling Among the previously mentioned activities, North Volt Now in a difficult position to find. Funds to avoid failure. Negotiations with lenders are ongoing, as reported by RepublicAlthough the final decision rests with the shareholders of the company. Among them are prominent names from Goldman Sachs. Black Croc Passing through one of Canada’s largest pension funds.
The North Volta crisis affects the entire European Union.
Possible failure Of North Volt It affects the whole, in a very significant way. The European Union Who based his green transition in the transport sector on this very company. What takes advantage of the described situation is, essentially, ChinaWith the recent cross-duty war between it and the EU that makes it even more complicated for the old continent to resolve the situation in a beneficial way.
